Rural-Urban Coalition Supports Legislative Reforms for EB-5 Investment Program In Lieu of Inadequate Regulations
March 8, 2019
- The coalition letter sent to the Office of Management and Budget’s (OMB) Director Mick Mulvaney—maintains that regulations proposed during the Obama era lack national security and anti-fraud provisions essential to overhaul the program. These proposed regulations also do not provide for a “set aside” of EB-5 investment visas for projects in so-called “Targeted Employment Areas” – a key policy component of stakeholder negotiations to encourage fair access to EB-5 capital in urban, suburban, and rural communities.
The letter also recommends that EB-5 Targeted Employment Areas should overlap with Opportunity Zones designated by the Treasury Department in June 2018. Both geographic designations are census tract-based and share the common objective to channel investment capital to the nation’s distressed communities. “We cannot discern a sound policy basis to establish two different sets of census tract designation criteria to achieve the same policy objective,” the organizations wrote.
- The coalition letter concludes that final publication of these rules by the Department of Homeland Security would undermine congressional efforts to improve and sustain the EB-5 program over the long term. “Our organizations continue to believe that congressional action is the best way to achieve lasting reform,” the letter states.